Lokpobiri: Winners in 2024 marginal bid round must put oilfields to immediate use

Heineken Lokpobiri, minister of state for petroleum resources (oil), says the prospective winners of the 2024 marginal bid round must put the fields to immediate use.

According to NAN, Lokpobiri spoke during an interview with journalists on the sidelines of the ongoing 2024 offshore technology conference (OTC) in Houston, Texas, on Monday.

The federal government, on April 30, had said it commenced the 2024 bid round for 17 oil blocks.

Speaking on the development, Lokpobiri said the fields must not be abandoned by the prospective awardees.

“What we have resolved going forward and with 2024 oil bid round is to see that fields won in a bid round must be put into immediate use as against what obtained in past where fields are left idle after assets are won,” the minister said.

Lokpobiri said the new strategy would guarantee job creation and boost activities in the upstream oil sector.

He said the quickest way towards economic recovery for Nigeria is through oil and gas investment.

The minister assured investors that oil would remain relevant for a long time, noting that the federal government is creating an enabling environment that will attract the best investments in the country.

He urged investors to take the opportunity the bid round offers to invest.

“Historically, no source of energy goes away. So, do not be deceived that fossil fuel will go away,” Lokpobiri said. 

“Talks at the recent global conferences have further proved that fossil fuel will continue to remain, the quicker we extract our oil, the better for us as a country.

“We are here at OTC to show the rest of the world that Nigeria is different and our government is different, in creating the best regulatory framework, allowing competitiveness, and removing all the investment barriers.”

‘WE’RE RESTORING INVESTMENT CONFIDENCE’

The minister said the country is restoring investment confidence in the sector.

“Investors can bring in their funds without worries. We are showing the world that Nigeria is ready for business,” he added.

Lokpobiri also said the country has rejigged signature bonus payments to the government by new investors in the oil and gas sector.

“Stakeholders had explained that globally, payable signature bonus by awardees of an oil bloc or marginal field rank highest in Nigeria,” he said.

On many occasions, according to Lokpobiri, the enormous sum involved in the payment of signature bonuses is a setback for investors.

The minister said to ensure investors had a soft landing, such payments will now be linked to immediate exploration and production activities by the new entrants.

Instead of making such payments to the federal government’s coffers, Lokpobiri said investors need to demonstrate to Nigeria that they possess the required funds to proceed with exploration.